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best way to connect wireless router

ok which is the best way to connect a wireless router
i used to do it this way
cable modem via usb to pc
pc to wireless router by eth0 card via ethernet cable

this meant all wireless connections went through pc, all connection laptops had to be 'set up' but pc had to be on all the time and as duel booting into linux had to set up nat

however i could see all internet traffic passing into pc

now i have a cable wireless router which is plumbed into the cable modem
this means i do not have to have a pc on all the time, no need to worry about natting but i can not see any other internet traffic passing to router

The way you presently have it is fine. Just check available security settings on the router -- MAC address filtering, encryption, logging, etc. etc. Different routers have different features, but most usually have at least the above mentioned.

@yellowcat - I'm truly amazed by the effort that you are making to eavsedrop on other people's communications.

If security is what you are trying to achieve, here's a link that I posted on home Wi-Fi security with simple rules - nonbroadcasting ssid, encryption, minimal signal range etc.5 Rules to Home Wi-Fi Security
For periodic check-ups, i would suggest that you fire up wireshark or airopeek or similar tool and do a sample capture of ongoing traffic

If your goal is constant surveillance of all traffic, you're treading on dangerous ground ...not a lot of users will be happy about it. But the best way to do it is already suggessted, stick a hub between the canble modem and the wireless router and connect your wireshark to a free port on the hub

When paranoid, i would go with wi-fi sniffer with the wi-fi adapter in monitor mode (AKA promiscuous mode). I like wireshark and kismet, by to use them properly, you NEED to set your wi-fi adapter to monitor mode.

This is most often limited by the driver, and it is easier to achieve with Linux then Windows